CBC commits to ‘distinctly Canadian’ strategy as funding cuts bite

CBC pursues 'distinctly Canadian' strategy as funding cuts bite

The Canadian Broadcasting Corp. plans to push forth with its “everyone, every way” five-year plan to spread its programming across more digital platforms despite recent federal funding cuts that will likely exacerbate a budget shortfall that hit $24.6-million last year, executives of the public broadcaster said Tuesday.

Hubert Lacroix, the chief executive of CBC/Radio-Canada, promised “more regional and more digital… and distinctly Canadian” programming during the network’s fourth-annual public meeting, held in St. John’s and broadcast to the Web.

Mr. Lacroix pointed to new weekend and late-night news shows introduced in Edmonton, Montreal and in Northern Canada as proof of the CBC’s commitment to the plan, a vision formed two years ago to reinvigorate national as well as local content at the CBC with a focus on pushing delivery onto the Web and wireless devices.

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But the broadcaster continues to lose money, according to its financial disclosures. Revenue of $649-million from advertising last year (and to a lesser degree subscriber fees from CBC News Network and recently sold Bold channel) as well as $1.16-billion in funding from Ottawa failed to make up for $1.84-billion in operating expenses.

In March’s federal budget announcement, the Harper government said it will reduce financial support for the CBC by $115-million over three years. The cuts were followed by a decision in July from the Canadian Radio-television and Telecommunications Commission to axe a local programming subsidy that contributed $47-million to the public broadcaster last year.

The CRTC made the decision following hearings at which cable and satellite companies such as Shaw Communications Inc. lobbied regulators to shut down the program.

To offset some of the loss of support, CBC is seeking through licence renewal hearings slated for November the right to sell ads on currently ad-free services, such as CBC Radio 2.

Back in 2008, vertical integration was a concept confined to boardroom conversations…Not anymore

Suzanne Morris, chief financial officer, also said a delayed or cancelled National Hockey League season would negatively impact the broadcaster’s financial performance this year, while advertising markets across television, radio and online remain sluggish.

A longer-term source of concern was the trend of large TV, wireless and Internet distributors like BCE Inc. and Rogers Communications Inc. acquiring the bulk of the country’s broadcast assets, creating a so-called “vertically integrated” market structure defined by a handful of giant telecom companies.

With BCE, Rogers, Shaw and Quebecor Inc. in control of the media marketplace, Mr. Lacroix said the CBC faces emerging pressures, while its role is more important than ever. “Back in 2008, vertical integration was a concept confined to boardroom conversations,” the executive said. “Not anymore.”

“Diversity and range of voices is at stake,” Mr. Lacroix said. “That’s where a public broadcaster comes in.”

The CBC must be the “first place Canadians think of” for content reflective of the national experience and “democratic way of life. Anything short of that” would be a failure for the network’s strategic vision, he said.